This study examines empirically the role of financial information in explaining long return windows in three major capital markets, UK, USA and France. We hypothesize that the relationship between financial information and security returns improves the longer the return window, and that this...

A domino effect can accelerate the spread of financial crises. Some firms, however, show better resistance than others thereby limiting the spread. Effective governance mechanisms enhance the ability of firms to absorb a stock market crisis. In a sample of Société des Bourses Françaises (SBF)...

This paper studies the relationship between firms' corporate governance quality and information content of stock trades. Following Hasbrouck (1991) method, a trade's information content is defined as persistent impact of trade innovation on stock price. Using firm-level governance data, we show...

This paper’s objective is to study the relationship between bank credit risk and financial performance and the contribution of risky lending to lower bank profitability and liquidity. The sample data comes from the Mergent Online database, which stores ownership, executive, and financial...

The U.S. and Germany rank #1 and #3, respectively, in the world, in terms of the total amount of international trade. U.S. and German firms compete with one another for a larger market share in other countries and in each other’s local markets. And yet, there are no published studies that...

We investigate the impact of broad-based stock option grants on future firm productivity using a sample of U.S. firms from 1990-2006. We focus on stock option grants predominantly to rank-and-file employees (broad-based stock options) because significant amount of stock options are granted to...

The recent evidence has shown that IPO uncertainty continues in aftermarket until a normal market is established. Evidence also indicates that aftermarket risk measured by stock’s beta is related to the degree of underpricing in the US market. This may imply that additional underpricing...

This study examines the four-year stock performance of firms that undertake a spin-off. The theoretical motivations for spin-offs have been widely documented in the literature; however, an empirical examination of the aftermarket performance of spin-offs across a protracted bear market remains an...

Divergence of opinion causes market prices to differ from intrinsic values. Greater divergence of opinion results in larger bid/ask spreads. This study utilizes Miller’s theory (Miller, 1977) which states that differences between bid and ask prices (price spread) is caused by divergence...

The study adjusts Pulic’s (2000) intellectual capital approach, “Value Added Intellectual Coefficient (VAICTM), to measure firms’ value creation and market performance. The research here adds two new intellectual capital components, Research and Development (R&D) expenditure...